Glimmer of Hope in Rate Stability, But It Could Be a Trap
Mortgage rates remained in a very narrow range near their highest levels in roughly 3 months today. If you're into splitting hairs, we could discuss the fact that the average lender is charging microscopically lower closing costs for the same rates quoted yesterday, but most borrowers won't even see a change in rate quotes.
The sideways momentum isn't all too surprising given that the week's biggest potential market movers are all coming out over the next 3 days. The past 2 days, then, have been a nice reprieve from the consistently higher rates seen since June 27th. But undertand the reprieve is not necessarily an indication of a reversal.
Even if the coming days end up helping rates, there are lingering risks regarding the European Central Bank (ECB) policy announcement on July 20th. It's unlikely that rates will be willing to embark on a significant move lower unless that ECB announcement is pleasantly surprising, and there's just as much chance of unpleasantness.
Bottom line: risk-takers have seen a glimmer of hope in the recent stability, but for most borrowers, it's still a good idea to err on the side of caution.
Loan Originator Perspective
Headlines are helping bonds extend yesterday's gains. As of about 1pm, i have only seen 1 lender issue a reprice for the better. If you plan to lock today, it would be best to hold off until late in the day to allow your lender time to pass along some of the gains. If i was within 15 days of closing, i would lock today but if i was closing after that, i would take the gamble and float overnight. - Victor Burek, Churchill Mortgage
Today's Most Prevalent Rates
Ongoing Lock/Float Considerations